Transcript of The Developing World. Presentation Outline 1)Characteristics of developing states 2)Economic...
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- The Developing World
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- Presentation Outline 1)Characteristics of developing states
2)Economic comparisons between developing and developed states
3)Newly industrialized states 4)Economic Policies of developing
states 5)Democratization in the developing world
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- Most of the worlds states which are part of the developing
world (yellow). Mexico Nigeria Iran
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- 1) Characteristics of developing states Lower economic
development and less industrialized Large income gap between rich
and poor Lower educated population with lower literacy rates Higher
birth rates and high death rates Traditional societies where women
tend to have an inferior status to men Poor governance and high
levels of corruption
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- Many developing states were once part of European empires.
Colonialism is a major legacy in the developing world Mexico
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- Nigeria Iran was never colonized
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- Shanty town in South Africa
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- Agricultural workers in Nigeria
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- U.N. Human Development Index (Measures literacy rates, life
expectancy, and GDP per capita) Mexico Nigeria Iran
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- Gini Index (Measures income inequality) Much higher income gap
in the developing world with the exception of the USA U.K. Mexico
Nigeria Iran China Russia
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- Transparency International (Measures Corruption levels) Mexico
Nigeria Iran
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- 2) Economic Comparisons CountryPPP (in USD$) United
Kingdom$34,800 Russia$15,900 Mexico$13,900 Iran$10, 600 China$7,600
Nigeria$2,500 Comparative PPP (purchasing power parity in per
capita GDP) What conclusions can you draw from this table?
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- Comparative Economic Sectors CountryPrimary (Agriculture)
Secondary (Industry) Tertiary (Services) Mexico13.7%23.4%62.9%
Iran25%31%45% Nigeria70%10%20% China38%46.9%43% Russia10%31.9%58.1%
United Kingdom 1.4%18.2%80.4% What conclusions can you draw from
this table?
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- 3) Newly industrialized states Political Scientists agree that
developing state is too broad and general, since among developing
countries there is a wide range of economic development New
industrialized refers to states which are still developing their
economies but which are moving towards full industrialization; some
may eventually become developed states
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- The Newly Industrialized States Mexico
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- 4) Economic policies of developing states A)Dependency Theory
B)Westernization Model
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- Dependency Theory Economic theory which states that the
economic problems which developing countries face were caused by
colonialism and economic exploitation by more developed states
According to this theory, globalization and trade are not the
solution rather the problem because developed states will always
take advantage of developing states
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- How does this cartoon illustrate the dependency theory?
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- Import Substitution Developing states which follow the
dependency theory believed that the best way to grow their
economies is to protect local industries from international
competition This is done by setting quotas on production, imposing
high tariffs (taxes) on imported goods, and providing huge
subsidies to local manufacturers- Iran still follows this model;
Mexico and Nigeria used to follow this model
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- Drawbacks of import substitution Policies in Mexico created
industries which were not internationally competitive High
employment resulted in high inflation and government debt Exports
to other countries were low Mexico had to borrow money from the
International Monetary Fund (IMF) and the USA
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- Westernization Model According to this theory, the only way for
developing states to grow their economies is to adopt the model
Western countries have followed for decades: create a market-based
economy encourage foreign investment and trade develop a successful
export industry
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- Export- oriented If you cant beat them, join them! Newly
industrialized states such as South Korea, India, Brazil, Mexico,
and Malaysia have liberalized their economies and focused on trade
and export South Korea exports many high tech products Brazil
exports resources such as timber, copper, and other metals India
exports cheap clothing, and outsources services Mexico exports
cheap clothing, and food
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- Drawbacks of Westernization model States such as Mexico and
Nigeria have given up sovereignty in exchange for more economic
development World prices of oil, metals, food etc. are constantly
fluctuating (going up and down) and states following the Western
model have little influence over these prices and a more vulnerable
to economic crashes and global recessions
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- 5) Democratization in the developing world Nearly all
developing states had an authoritarian regime at one point or
another Mexico, Nigeria, and Iran all share this common history
Today, Mexico and Nigeria are considered democracies Nearly all
democracies in the developing world are emerging, struggling, or
illiberal democarcies
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- Mexico Nigeria China U.K. Russia
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